Dec. 3 (Bloomberg) -- Aquila Resources Ltd. and Vale SA
said they may miss deliveries from their joint venture Isaac
Plains coal mine in Australia’s Queensland state after heavy
rain forced a halt to operations.

The coal handling preparation plant was flooded after rain
on Nov. 29 and Nov. 30, causing a loss of production, the Perth-based company said today in a statement to the Australian stock
exchange. Both partners have declared force majeure, a legal
term that allows them to miss contracted deliveries.

The mine produces thermal and metallurgical coal and had
sales of 491,961 metric tons of coal in the three months to Sept.
30, according to a regulatory filing. Queensland has had
rainfall above average in recent weeks, Aquila said.

“Steps to remedy these circumstances and to minimize their
effect upon the performance of the mine are being taken and the
company will provide an update once production resumes,” Aquila
said in the statement.